Garuda Indonesia announces noteholders approve restructuring

Garuda Indonesia announced (11-Jan-2010) its noteholders approved an extraordinary resolution for the restructuring of USD305 million of floating rate notes, due in 2007 and IDR366 billion (USD40 million) floating rates notes, also due in 2007. The transaction will be executed on 21-Jan-2010. The amendments to the trust deed constituting the notes include an extension of the final redemption date of the notes to Jan-2018 and the modification of interest rates on the USD Notes to six-month LIBOR plus 1.75% p/a. The result of the auction for the discounted purchase of notes by Garuda undertaken in conjunction with the restructuring of the notes will be announced on 13-Jan-2010. [more]

Garuda Indonesia:"Garuda is very pleased to have completed its debt restructuring with its international and domestic Noteholders. In addition to restructuring the Notes, we have recently completed the restructuring of Garuda's trade debt with Pertamina and Angkasa Pura I and Angkasa Pura II as well as the conversion of the mandatory convertible bonds held by Bank Mandiri. These restructurings will provide long term stability for Garuda's operations and strengthen our balancing sheet. Garuda will continue to work to complete the restructuring of its other debts as soon as possible," Emirsyah Satar, CEO. Source: Garuda Indonesia, 11-Jan-2010.

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